The Cellular Operators' Association of India (COAI) has said that spectrum reforms notified by the government including removal of financial bank guarantee requirements, and scrapping of SUC for future auctions are welcome steps that would ease financial burden on operators. It said the slew of measures would go a long way in enhancing the ease of doing business in the telecom sector.
The telecom department has said that it would also appropriately address the eligibility conditions for participation in the auction, so that participants have sufficient financial capacity. The government has also issued fresh guidelines for the spectrum sharing. The notification follows the blockbuster reforms and support package announced last month by the government for the telecom industry that offered much-needed breather to players in the sector.
The COAI said ‘we appreciate the steps taken by the government with regard to the future spectrum assignments to the telecom service providers (TSPs). It also lauded measures such as removal of Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) requirements, increasing the validity of future access spectrum assignment to 30 years, defining schedule for future spectrum auctions, providing option for surrendering spectrum after 10 years, and removal of additional SUC of 0.5 per cent in case of spectrum sharing.
